When managing lower league teams, is it normal for your team to lose money?

When managing FC Edmonton in the second division American league I took my last place poised team to an unexpected title run and actually won the league. I came in last place in the Amway Canadian Championship as expected (it is impossible to beat Toronto FC) and I kept my wage total at 500k when my allotted wage amount was 750k. I took 5 loans for free and only signed 2 young players to minimum contracts. Furthermore I loaned a bunch of guys out to other teams who payed their wages and i set up a parent club with Toronto FC to gain extra cash and I built nothing and asked for nothing all season.

Hmm, then it might be up to poor management (not by you) and that they allow you to use too much money for your wage budget/transfers. I know that has happened to other users managing Liverpool, and you probably have to look at lowering your wage budget until you get improved sponsor deals.